20 Passive Income Business Models You Can Start Today
Despite having a steady paycheck from their 9 to 5 job, deep down inside everyone wants more. As it means More money. More flexibility. More freedom. If you’ve finally decided to take action than this article is for you, as in it i will break down 20 passive income ideas that’ll help you earn passive income while keeping your full-time gig. Thus finally allowing you to get more than you’ve ever dreamed of.
What is Passive Income?
In simple words, passive income is money you earn without the need for continued work. The work tends to be front-loaded and may even require investment but after some time these income streams can start to build and maintain themselves.
“Make money while you sleep,” you’ve probably heard this expression, that’s the biggest draw that entices people to earn passive income. You can create something (a course, blog, videos, ebook, or an online store) that generates money even when you’re not working. Or you can own something (stocks or property) that allows you to earn passive income.
20 Passive Income Business Models
One of the most profitable passive income sources that you’ll find online, Dropshipping is a method where you can sell third-party products to customers from a Drop Shipping Company without ever seeing or shipping the item. When you make a sale, the product is shipped directly from the drop shipper to the customer. Your profit is the difference between what the drop shipping company charges you and what you charge your customers. Check out our article on E-Commerce and Shopify! You can get started right now with a FREE 14 Day Trial on Shopify Exclusively from Passive Wealth Warrior right Here!
You can sign up for Shopify to start dropshipping today. In the Shopify App Store, you’ll find the Oberlo (a marketplace which specialize in dropshipping); here you’ll find trending products that you can then sell online to customers around the world. You can sell products in various dropshipping niches from home decor to fashion to beauty.
- Run a Blog
Blogging is one of the best small business ideas as it has helped countless entrepreneurs and bloggers earn passive income through courses, affiliate links, products, sponsored posts, book deals, and more. It’s true that it requires a lot of upfront work to build a successful blog. However, it’s one of the most sustainable ways to generate an audience by building an email list or through organic and social traffic. One thing that makes running a blog one of the easiest ways to make passive income is that it enables you to turn that one asset into several different streams of income.
- Create a Course
Whether you decide to sell a course on a platform like Udemy or on your own website, you’ll find customers who want to learn your insider tips and tricks. If you’ve done what I’ve described in tip number two and built your own audience, selling your course on your website can help you control how much passive income you earn. Selling on course platforms like Udemy will be a bit easier, but your course may be heavily discounted during certain periods. This will heavily affect how much income you earn.
- Instagram Sponsored Posts
If you are an Instagram lover like me, you can increase your passive income by converting your scrolling time into posting time. The best thing about this social media platform is that you can literally create fan pages for absolutely anything. Whether you love fashion, travel, home decor, beauty, or something really peculiar like outrageous dog grooming, you’ll still find a committed audience.
The secret to getting a ton of followers is to be strictly consistent with the type of content you post. So be sure to stick to one niche so that your followers can count on you to deliver more content just like that. Also be sure to add your email address in your Instagram bio, as your account starts to grow, so will sponsored posts requests allowing you to make money on Instagram.
- Create a Print on Demand Online Store
Print on demand allows you to sell your custom graphics on products like mugs, clothing, phone cases, canvases, bags, and more. The best thing about this business model is that you can build your own branded products. Its requirement of being savvy at graphic design is the only downside i can see, as the margins are often too thin to outsource the designs affordably. However, if you design that unique winning design, your sales will take off.
- Create an App
If you’re a programmer or developer, you might want to try creating apps as a passive income stream. You can go about it in two ways. You can make your app free and monetize with ads or you can charge a fee for people who want to buy your app.
- Invest in Stocks
If you think about it stocks have played a big role in the deep, endless bank accounts of the world’s richest people. Warren Buffett reads 500 pages of business’ annual reports a day, which helps him better understands whether or not a business is performing well, thus improving his ability to invest in stocks. So while the act of investing in stocks is pretty passive, the research that goes into it is active. Still, the income that you can earn by investing in stocks stretches far beyond what your value at your 9 to 5 job is worth. So, consider this idea if you like reading about the performance of various businesses.
- Buy Property
Real estate can be a great way to earn passive income depending on where you buy and when. There has been a rapid increase in property value in popular cities like Toronto (44% in the past five years in Canada alone). You may find some lower cost properties by buying pre-construction condos, whose value will increase by the time it’s finally built, allowing you to sell the property for a profit once it’s complete. It can be risky (as with all investments), so it’s best to talk to a real estate agent if you’re new to the business to help you make the right decision.
- Host Airbnb
If you’ve done what I’ve described in tip number eight, you can choose to list your home or condo to rent on Airbnb. What’s interesting about Airbnb passive income is that you don’t actually need to buy a new property in order to earn it. You can also rent a room in your current apartment or home if you have a spare room.
- Build your Own Website
Building your own website can be a reliable source of passive income. Some people create marketing agencies and outsource the work to freelancers. Others create online courses to share their knowledge and educate others. You can also sell products – physical or digital. However, you gain more control over what you sell and how much money you make by building your own website.
The upside to affiliate marketing is that almost every big brand has an affiliate program, thus allowing you to sell some pretty popular products and earn passive income. The only real downside to this business model is that you only make a commission of the sale. Some online retailers only give a measly 10 to 12% referral bonus while other programs (like Shopify’s affiliate program) allows you to earn up to $2,000 per referral, which is huge. So make sure you do some research into the best affiliate marketing programs before you get started. Without having to spend money on ads, the most cost-effective way to make recurring affiliate commissions is through Blogging.
- Sell your Videos
We live in an age, in an era where people are obsessed with content. If you always find yourself in the midst of excitement and drama, you might want to pull out your Smartphone and hit record. As you can make some passive income by selling that video to a news site. And if the video takes off, you can make some recurring money for months, and sometimes even years. Of course, the easiest way to get in on the action is to be at public events such as demonstrations, protests, and festivals.
- Flip Websites
Do you love building online stores and websites? If so, you could make passive income selling them. You’ll likely need to get your first few sales in-order to prove that your store is awesome. But if you’ve got great design skills and had build out some of your website’s content, you could find someone who’d be willing to buy your store. You could try out Shopify’s Exchange Marketplace, if you’re looking for a place to sell your website. On the platform, you can sell your advanced six- or seven-figure store or your newly built online store. It’s the perfect platform for online stores of all sizes.
- Company Stocks
Yup, your job of 9 to 5 can also become a passive income stream. No, it’s not your work hours. However, stocks of your company or any company-matching retirement plans can help you score some pretty decent passive income. Of course, you’ll be required to invest some of your own money too, but the extra bit that the company adds in is a nice added-benefit if you’re willing to try it. Few people ever avails this opportunity, but if you’re starting a new 9 to 5 job, be sure to ask for the company stocks as part of your hiring package. Trust me you’ll not regret.
- Create YouTube Videos
From ad revenue to sponsored videos, this passive income stream just keeps on giving. The secret to creating a successful YouTube channel (in-order to earn recurring income) is creating content on a consistent schedule for a long time. That’s it. If you stick with this formula for the long haul, eventually you’ll start reaping the passive income rewards.
- Sell your Photography
While it may seem like an active income business, it’s actually not. Photographers don’t only earn from taking photographs, they sell them too. Magazines, stock photo sites and canvas printing for their clients are some of the ways through which photographers make the big bucks. You can do too; all you need is a great camera to get started. But today, you can even use your Smartphone to take photos, thus allowing you to make passive income in a snap.
- Help Businesses Bring in Clients
Are you a salesperson or savvy marketer? There are tons of businesses that will pay you for bringing them more business. DJs, photographers, Freelancers, and other solopreneurs will often be willing to pay a referral bonus for finding them a client that signs a contract. So if you love helping people make money, you can make passive income yourself through your connections. All it takes is a couple of messages or emails and you could earn passive income for very little effort.
- Write an eBook
Ebooks are still a hugely popular content medium, even though they exploded onto the scene in 2009 and 2010. There is a good chunk of people who make passive income from creating them to this day. Sure, it’s a very competitive market, but if your writing chops are stellar, you could find yourself with a decent passive income. By creating captivating novels or how-to ebooks, you could build a fanbase of loyal readers.
- Sell your Stuff
You might want to turn that clutter in your home into cold, hard cash. We all have those piles of boxes filled with stuff that we haven’t given attention in years. You can sell it to help you make passive income. Although you may be required to dig deep, but you might find that you have some items that are worth some serious cash. So if you don’t have any idea where to start when it comes to passive income, your closet might be your best bet.
- Sell Digital Products
If instead of selling someone else’s products, you’re looking to create your own, than you can create digital products. To sell your digital products online you can use Shopify. Digital products can include everything from online courses, ebooks, custom graphic designs, PDFs, stock photos, or some other digital goods. Selling these products is the epitome of passive income, as the entire process can be automated on Shopify with instant downloads.
You can easily elevate your earnings through passive income. If you’re looking to replace your 9 to 5 income so you can quit your job, the passive income ideas on this list can help you do that. It’s okay if you like your full-time gig too. The work that goes into earning passive income tends to be manageable when paired with a 9 to 5. So, yup, you can do both. Whether you’re looking to start your own agency, create profitable content, or start a dropshipping store you’ll find that there’s money to be made in all these areas. All you need to do is get started.
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